Full Reserve Study SAMPLE ASSOCIATION. City, WA 5/1/2010. Report #1234

Transcription

1 Full Reserve Study SAMPLE ASSOCIATION City, WA 5/1/2010 Report #1234 Phone: Fax:

2 SAMPLE ASSOCIATION Client Info: REPORT #: 1234 STUDY TYPE: FULL INSPECTION DATE: 4/1/2010 REPORT PERIOD: 1/1/ /31/2011 NUMBER OF UNITS: 45 Parameters: ANNUAL INFLATION RATE: 3% ANNUAL CONTRIBUTION INCREASE: 3% NET ANNUAL INVESTMENT RATE: 2% Results: PROJECTED STARTING RESERVE BALANCE: $90,000 THEORETICALLY IDEAL RESERVE BALANCE: $191,940 PERCENT FUNDED: 47% MOST RECENT MONTHLY RESERVE CONTRIBUTION: $2,500 RECOMMENDED 2011 MONTHLY CONTRIBUTION: $4,780 RECOMMENDED SPECIAL ASSESSMENT: $0 This document is a Full Reserve Study that meets all requirements of chapter RCW Article 3, Section 2. Information was gathered for this Reserve Study during our site inspection on 1/1/2010. A Reserve Study Professional performed this Reserve Study. The Association currently contributes $2,500 per month to the reserve account. Based on the findings of our report, we suggest increasing the monthly reserve contribution to $4,780 in fiscal year Please refer to the Photo Component Section for detailed component information regarding our funding decisions.

3 Funded Component Chart Remaining Useful Useful Replacement Cost Component Quantity Life Life Low High Asphalt - Overlay Approx 20,620 Square Feet $39,180 $41,240 Asphalt - Seal Approx 20,620 Square Feet 5 1 $4,120 $6,190 Mailbox Clusters - Replace 4 Clusters $4,800 $6,400 Bollard Lights - Replace 24 Lights $4,800 $9,600 Exterior Lights - Replace 180 Assorted $6,720 $8,640 Play Equipment - Replace 1 Structure $20,000 $30,000 Wood Fence - Replace Approx 450 Linear Feet $11,250 $13,500 Building Exterior - Clean/Seal/Paint Approx 129,600 GSF 10 6 $18,000 $27,000 Vinyl Siding - Replace Approx 129,600 GSF $648,000 $907,200 Composition Shingle Roof - Replace Approx 84,000 Square Feet $294,000 $336,000 Gutters/Downspouts - Replace Approx 4,500 Linear Feet $22,500 $31,500 Site Inspection: Our site inspection was conducted on 4/1/2010. We compiled a photographic record and visually inspected all of the common and limited common elements. We noted current condition, materials, and exposure to weather elements. The Association contact informed us of any items that are being handled from the Operational budget, not Reserves. Reserve Funds Analysis: The Reserve Fund balance is projected to be $90,000 as-of the start of your fiscal year on 1/1/2011. This is based on your actual balance provided to us by the Association contact. As of 1/1/2011, your Theoretically Ideal Reserve Balance is figured to be $191,940 making your reserves 47% funded. Recommendations: The Association currently contributes $2,500 per month to the reserve account. Based on the findings of our report, we suggest increasing the monthly reserve contribution to $4,780 in fiscal year 2011.

4 PHOTO COMPONENT SECTION Component: Concrete Repair/Replace Comments: Fair condition with no damage or unexpected deterioration observed. We suggest regularly inspections of concrete, with repair as needed to prevent water penetration and damage. Periodically pressure wash for appearance and repair any trip hazards immediately to ensure safety. We do not expect large-scale or total replacement within the scope of this study. No reserve funding suggested. Quantity: Extensive Square Feet Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

5 Component: Asphalt - Overlay Comments: Fair condition with no significant cracking or settling observed. We suggest a seal coat every five years to obtain maximum life of asphalt surface. Repair cracks, clean oil stains promptly and ensure that drains are clear. Best to plan to overlay asphalt at roughly the time frame below. Quantity: Approximately 20,620 Square Feet Useful Life: 30 years Low Cost: $1.90/Sq Ft Remaining Useful Life: 26 years High Cost: $2.00/Sq Ft Low Project Cost: $39,180 High Project Cost: $41,240

6 Component: Asphalt - Seal Comments: Fair to poor condition with areas of general surface deterioration, fading and cracking apparent. Seal coating protects the asphalt from the weather elements and provides a uniform appearance. Incorporate any striping and curb repair into this project. Plan for regular seal coat cycles approximately every five years. Quantity: Approximately 20,620 Square Feet Useful Life: 5 years Low Cost: $0.20/Sq Ft Remaining Useful Life: 1 year High Cost: $0.30/Sq Ft Low Project Cost: $4,120 High Project Cost: $6,190

7 Component: Mailbox Clusters - Replace Comments: Fair condition observed no damage or unusual wear. Inspect regularly, clean and repair as needed from general maintenance budget. Best to plan for total replacement at roughly the time frame below due to constant usage and wear over time. Quantity: 4 Clusters Useful Life: 20 years Low Cost: $1,200/each Remaining Useful Life: 16 years High Cost: $1,600/each Low Project Cost: $4,800 High Project Cost: $6,400

8 Component: Bollard Lights - Replace Comments: Fair condition of bollard lights with no damage observed. They are assumed to be in functional operating condition. Regularly inspect and change bulbs as needed, apply touch up paint to posts. We suggest planning for large-scale replacement at the interval below. Quantity: 24 Bollard Lights Useful Life: 15 years Low Cost: $200/each Remaining Useful Life: 11 years High Cost: $400/each Low Project Cost: $4,800 High Project Cost: $9,600

9 Component: Exterior Lights Replace Comments: Fair condition of assorted exterior lights. They are assumed to be in functional operating condition. Regularly inspect and change bulbs as needed. Best to plan for large-scale replacement at the interval below. Time replacement to coincide with exterior paint cycles for cost efficiency and a consistent appearance. Quantity: (180) Assorted Useful Life: 15 Years Low Cost: $50/each Remaining Useful Life: 11 Years High Cost: $70/each Low Project Cost: $9,000 High Project Cost: $12,600

10 Component: Play Equipment - Replace Comments: Fair and stable condition of play equipment observed during our inspection. Inspect regularly and repair promptly as needed from general maintenance budget. We suggest setting aside funds to replace the play equipment at roughly the time frame below. Note: project costs can vary significantly depending on structure chosen and installation method; professional specifications, soliciting several estimates, and professional project oversight are recommended. Quantity: 1 Play Structure Useful Life: 15 years Low Cost: $20,000/each Remaining Useful Life: 11 years High Cost: $30,000/each Low Project Cost: $20,000 High Project Cost: $30,000

11 Component: Wood Fence - Replace Comments: Fair condition with no significant instability or damage noted. Inspect regularly for any damage or deterioration and repair as needed. Try to avoid contact with the ground and surrounding vegetation. We suggest planning to replace the wood fence at roughly the time frame below. Quantity: Approximately 450 Linear Feet Useful Life: 15 years Low Cost: $25/LF Remaining Useful Life: 11 years High Cost: $30/LF Low Project Cost: $11,250 High Project Cost: $13,500

12 Component: Garage Doors - Replace Comments: Fair condition noted during our site inspection. Expect an extended life from these metal doors. Clean and paint along with other exterior building surfaces. We do not expect large-scale or total replacement within the scope of this study. No reserve funding suggested. Quantity: 45 Metal Doors Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

13 Component: Entry/Utility Doors - Replace Comments: Fair condition of assorted doors observed during our inspection. Repair as needed from general maintenance budget. Clean and paint along with other building surfaces. No reserve funding required. Quantity: 54 Doors Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

14 Component: Building Exterior Paint Comments: Fair condition of painted surfaces - general wear and aging, but no peeling at this time. Exterior surfaces consist primarily of vinyl siding with a moderate amount of painted surfaces. Touch up and repair locally as needed using general maintenance funds. Repair areas as needed prior to painting. We suggest planning for regular painting cycles at the interval below. Quantity: Extensive Square Feet Useful Life: 10 years Low Cost: $400/unit Remaining Useful Life: 6 years High Cost: $600/unit Low Project Cost: $18,000 High Project Cost: $27,000

15 Component: Vinyl Siding - Replace Comments: Fair condition of vinyl siding observed during our limited scope visual inspection. No significant cracking, damage or instability apparent. No reported water intrusion at this time. We assume the siding was installed properly with adequate moisture barrier and waterproofing details. We recommend periodic evaluations of all siding with prompt repair as needed to ensure building waterproofing. Vinyl is a low maintenance product, but eventual replacement will be necessary, as vinyl will typically become brittle and worn over time. Best to plan for replacement at the interval indicated below. Quantity: Approximately 129,600 GSF Useful Life: 30 years Low Cost: $5.00/GSF Remaining Useful Life: 26 years High Cost: $7.00/GSF Low Project Cost: $648,000 High Project Cost: $907,200

16 Component: Windows/Glass Doors - Replace Comments: We were informed that all of the windows and glass doors are the responsibility of the individual Unit owner to maintain, repair and replace. In our opinion, uniform maintenance, repair and replacement by the Association is preferred toward protecting the common structural components against water intrusion and other damage. We recommend periodic evaluations with prompt repair as needed to ensure building waterproofing and help prevent structural damage. No reserve funding appropriate under this pattern of care. Quantity: Approximately 585 Assorted Sizes Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

17 Component: Composition Shingle Roof - Replace Comments: Generally fair condition with no significant damage, unevenness or missing shingles observed during our limited scope visual inspection. No reported problems at this time. We assume the roof to have been correctly installed per the manufacturers specifications. We suggest regular professional inspections and prompt repairs as needed to ensure waterproof integrity. Keep gutters and downspouts clear and free of debris. Plan for replacement at roughly the time frame below. Quantity: Approximately 84,000 Square Feet Useful Life: 25 years Low Cost: $3.50/Sq Ft Remaining Useful Life: 21 years High Cost: $4.00/Sq Ft Low Project Cost: $294,000 High Project Cost: $336,000

18 Component: Gutters/Downspouts - Replace Comments: Fair condition with no damage observed. Inspect regularly and keep gutters and downspouts free of debris. Repair as needed from general maintenance funds. Best to plan for total replacement at the same intervals as roof replacement for cost efficiency. Quantity: Approximately 4,500 Linear Feet Useful Life: 25 years Low Cost: $5.00/LF Remaining Useful Life: 21 years High Cost: $7.00/LF Low Project Cost: $22,500 High Project Cost: $31,500

19 Component: Drainage System Repair/Refurbish Comments: Fair condition with no reported problems at this time. We assumed the community was properly designed with adequate provisions for drainage. As routine maintenance, Inspect regularly and keep drains and grates free of debris to ensure water is evacuating as designed. Pump out sediments if needed utilizing mobile evacuator service fund from the maintenance budget. We do not expect any large-scale expenses within the scope of this study. No reserve funding suggested. Quantity: Extensive System Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

20 Component: Electrical System Repair/Replace Comments: Analysis of electrical system is beyond the scope of a reserve study. There is no predictable time frame for large-scale repair/replacement expenses within the scope of our report. Treat minor repairs as ongoing maintenance expense. No basis for reserve funding at this time. Quantity: Extensive System Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

21 Component: Plumbing Repair/Replace Comments: No reported problems at this time. Analysis of plumbing system is beyond the scope of a reserve study. There is no predictable time frame for large-scale repair/replacement expenses within the scope of our report. If leaks, poor flow/water quality, etc become evident, have qualified plumber or engineer inspect closely and develop scope of repair/replacement. Treat minor repairs as an ongoing maintenance expense. No basis for reserve funding at this time. Quantity: Extensive Throughout Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

22 Component: Landscaping - Refurbish Comments: This component may be utilized for setting aside funds for larger expenses that do not occur on an annual basis, such as: large-scale plantings, bark mulch or landscape improvement projects. No stated desire to fund at this time. No reserve funding suggested. Quantity: Extensive Square Feet Useful Life: Low Cost: Low Project Cost: Remaining Useful Life: High Cost: High Project Cost:

23 Year-By-Year Summary Chart Starting Ideal Annual Loans or Projected Reserve Reserve Percent Reserve Special Interest Reserve Year Balance Balance Funded Contributions Assessments Income Expenses 2011 $90,000 $191, % $57,360 $0 $2,395 $ $149,755 $247, % $59,081 $0 $3,565 $5, $207,092 $299, % $60,853 $0 $4,794 $ $272,739 $361, % $62,679 $0 $6,138 $ $341,556 $426, % $64,559 $0 $7,546 $ $413,661 $494, % $66,496 $0 $9,021 $ $489,177 $566, % $68,491 $0 $10,232 $33, $534,878 $608, % $70,546 $0 $11,508 $ $616,932 $687, % $72,662 $0 $13,186 $ $702,780 $771, % $74,842 $0 $14,940 $ $792,562 $858, % $77,087 $0 $16,775 $ $886,424 $950, % $79,400 $0 $17,891 $79, $904,246 $966, % $81,782 $0 $19,077 $ $1,005,105 $1,065, % $84,235 $0 $21,138 $ $1,110,477 $1,170, % $86,762 $0 $23,290 $ $1,220,529 $1,279, % $89,365 $0 $25,537 $ $1,335,432 $1,395, % $92,046 $0 $27,345 $53, $1,401,459 $1,461, % $94,807 $0 $29,244 $ $1,525,510 $1,587, % $97,652 $0 $31,777 $ $1,654,939 $1,718, % $100,581 $0 $34,419 $ $1,789,939 $1,856, % $103,599 $0 $37,174 $ $1,930,712 $2,001, % $106,706 $0 $33,529 $645, $1,425,137 $1,488, % $109,908 $0 $29,875 $ $1,564,919 $1,628, % $113,205 $0 $32,729 $ $1,710,854 $1,774, % $116,601 $0 $35,709 $ $1,863,164 $1,928, % $120,099 $0 $38,819 $ $2,022,082 $2,089, % $123,702 $0 $22,524 $1,936, $232,293 $264, % $127,413 $0 $5,975 $ $365,681 $382, % $131,236 $0 $8,705 $ $505,622 $507, % $135,173 $0 $11,570 $0

24 Disclosures Washington State disclosure, per Senate Bill 6215: This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair or replacement of a reserve component. This Reserve Study is based on observations and data obtained from the on-site visit, field measurements, general age of the property and its components, information provided by the association on recent repairs, replacements and maintenance of the common and limited common areas of the site. Reserve Solutions relied upon the Association contact to provide the current reserve balance and the rate of interest earnings. In addition, we have considered the Association and the Association vendor s representation of current and historical reserve projects reliable. No destructive or intrusive inspections of any of the common or limited common area elements were performed. The estimated replacement and maintenance values in the reserve study are derived from appropriate local industry sources (such as contractors, service providers, etc.), the association historic records, and/or professional experience. The anticipated useful life of each component is based on industry standards, manufacturer warranties or recommended maintenance and/or replacement. Phone: Fax: jeremy@reservesolutions.net